eBay 2011 Annual Report Download - page 117

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Note 9 – Derivative Instruments
The notional amounts associated with our foreign currency contracts at December 31, 2011 and 2010 were $4.2 billion and $1.8 billion ,
respectively, of which $2.0 billion and $1.2 billion , respectively, were designated as cash flow hedges. Derivative transactions are measured in
terms of the notional amount, but this amount is not recorded on the balance sheet and is not, when viewed in isolation, a meaningful measure of
the risk profile of the instruments. The notional amount is generally not exchanged, but is used only as the basis on which the value of foreign
exchange payments under these contracts are determined .
Fair Value of Derivative Contracts
The fair value of our outstanding derivative instruments was as follows:
Effect of Derivative Contracts on Accumulated Other Comprehensive Income
The following table summarizes the activity of derivative contracts that qualify for hedge accounting as of December 31, 2011 and 2010 ,
and the impact of designated derivative contracts on accumulated other comprehensive income for the years ended December 31, 2011 and 2010 :
F-25
Derivative Assets Reported in Other
Current Assets
Derivative Liabilities Reported in
Other Current Liabilities
December 31,
2011
December 31,
2010
December 31,
2011
December 31,
2010
(In thousands)
Foreign exchange contracts designated as cash flow hedges
$
74,772
$
35,853
$
2,927
$
4,162
Foreign exchange contracts not designated as hedging
instruments
28,885
1,343
57,300
801
Other contracts not designated as hedging instruments
7,971
—
—
—
Total fair value of derivative instruments
$
111,628
$
37,196
$
60,227
$
4,963
December 31, 2010
Amount of gain (loss)
recognized in other
comprehensive income
(effective portion)
Amount of gain (loss)
reclassified from
accumulated other
comprehensive income
to net revenue and operating
expense
(effective portion)
December 31, 2011
(In thousands)
Foreign exchange contracts
designated as cash flow hedges
$
13,560
$
71,849
$
13,560
$
71,849
December 31, 2009
Amount of gain (loss)
recognized in other
comprehensive income
(effective portion)
Amount of gain (loss)
reclassified from
accumulated other
comprehensive income
to net revenue and operating
expense
(effective portion)
December 31, 2010
(In thousands)
Foreign exchange contracts
designated as cash flow hedges
$
(4,821
)
$
30,385
$
12,004
$
13,560